In order to keep our customers informed, you will begin seeing a $5.92 – $6.00 surcharge on your freight bill, depending upon the carrier being used. There are currently three major LTL carriers imposing this fee, based upon business originating and destined to California. We believe, the reason behind this is two-fold. One, as the economy continues to dwindle, carriers are looking for ways to increase their profits, which the economy is not allowing them to do. The second reason may be the continued reduction of fuel prices.
As you might know, or not know, major carrier’s are listed through the various public offering’s and failure to meet their forecasted numbers causes their stocks to take a substantial re-evaluation. This is not good for the carriers nor their investors. We believe, this is a way for them to create a higher profit, albeit, they are using a law that does not apply to the trucking industry. We have tried and tried to eliminate these charges but the carrier’s are not budging.
The Transportation and Logistics Council published an article: http://www.thetruckersreport.com/due-to-significant-new-burdens-two-carriers-add-california-surcharge/showing information from ABF on why the compliance surcharge was being added.
“Shipments originating from and/or destined to the state of California will be subject to a charge of $5.92 per shipment due to higher costs, including but not limited to compliance with California state regulations.”
The “regulations” that ABF was referring to are thought to include a bill which went into effect at the beginning of the year. The bill stated that all employees working within the state of California were subject to the state’s labor laws. This meant that carriers would have to compensate their employees for rest breaks, meal breaks, recovery periods and “other nonproductive time.”
Old Dominion declined to explain why they were charging it.”
We thought you should know about this.